PITTSBURG — NPC International announced new acquisitions June 29.
NPC agreed to acquire 35 restaurants from a subsidiary of The Wendy’s Company for $29.2 million, as well as four restaurants recently constructed by Wendy’s for $7.4 million.
NPC acquired the 39 restaurants as part of The Wendy’s Company system optimization initiative. Wendy’s is looking to reduce company-operated restaurant ownership to five percent of its total system. The acquisition was mostly funded with available cash on hand.
“This acquisition will be our fifth acquisition in the Wendy’s system since 2013,” NPC Chairman and CEO Jim Schwartz said in a release. “And will increase our holdings to 183 restaurants with revenues exceeding $260 million, or approximately 22 percent of our total consolidated revenues.”
NPC is currently the world’s largest Pizza Hut franchise and operates 1,233 Pizza Hut restaurants and delivery units in 28 states.
The newly acquired restaurants will be owned and operated by NPC’s wholly owned subsidiary, NPC Quality Burgers, Inc. The new units are all located in the Raleigh-Durham metropolitan area in North Carolina. Last year, 35 of the units generated approximately $59 million in net product sales.
“We are excited to participate in Wendy’s system optimization initiative and further our growth in the Wendy’s system.” Schwartz said in a release. “This highly coveted market will leverage our existing Wendy’s infrastructure and is contiguous with our current Winston-Salem and Greensboro Wendy’s operations.”
NPC expects the deal to close in late July. The company also plans to remodel existing buildings and acquired ones as part of the transaction.
— Chance Hoener is a staff writer for the Morning Sun. He can be emailed at firstname.lastname@example.org or follow him on Twitter @ReporterChance.